The 12-Month Refinance Countdown

by Trevor Calton

If your commercial loan is maturing in the next 12 to 18 months, you might be walking into a trap.

Many owners think they have plenty of time, but the longer you wait, the more that the negotiating leverage shifts to the lender's side of the table. You might be focused on operations, and that maturity date just seems like a line item on a spreadsheet for now, but here's a secret from inside the lender's office: that ticking clock is their favorite negotiating tool.

Lenders know that as your maturity date gets closer, your options start to dwindle. As you get closer to that 12-month window, the power dynamic shifts. The result is that you could end up having to accept very costly loan terms or get a "Hail Mary extension" just to avoid a catastrophic default. You lose control.

But what if you could flip that power dynamic entirely?

The Proactive Timeline Used by Sophisticated Operators

The most sophisticated owners and asset managers I know are proactive about starting the process well before that 12-month period. It gives them plenty of time to shop around and negotiate.

Here's how you should think about your timeline:

• 12 Months Out: Begin your internal strategy and data preparation. Get your ducks in a row and know what your goals are for the next 5-10 years.
• 9 Months Out: Start checking the market and getting soft quotes from a variety of lenders.
• 6 Months Out: You should be negotiating term sheets and preparing to lock in your best offer.

By starting the conversation early, you create competition in your favor. You give yourself time to fix any issues with your data, and you show up to the negotiating table not as a desperate borrower, but as a savvy operator with options.

Your Takeaway

Your maturity date is not a deadline; it's a strategic advantage if you use it correctly. Stop thinking of it as something to react to in the final quarter and start a 12-month countdown. When you control the timeline, you control the negotiation.

 Your Next Step: Get the Playbook

I've put a detailed visual of this timeline in my Multifamily Capital Strategy Playbook. It’s a free download that includes the "Refinance Window Framework" to guide your preparation.

Download the Free Playbook Now

Trevor Calton is a 25+year veteran of the commercial real estate industry who has originated hundreds of commercial multifamily loans, executed over $5B in acquisitions, and directed the asset management of more than 6,000 multifamily units. As the founder of the Real Estate Finance Academy and Evergreen Capital Advisors, he now serves as a trusted strategic partner for owners and operators navigating high-stakes capital decisions.

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